Accused Sydney CBD stabber formally charged

Mert Ney

Mert Ney

Tributes, including a small teddy bear with a message "Taken too soon", were left outside the Sydney apartment building where Michaela Dunn was found dead.

The case was adjourned to Central Local Court on Monday.

Hotel CBD where a woman was allegedly stabbed.

Ney, 21, was captured on camera just before 2pm after allegedly killing Michaela Dunn at a nearby apartment.

Meanwhile, lawyer John Bamford has broken his silence, revealing he was the city worker - since dubbed "chair man" - who approached Ney before his arrest.

Police have established Strike Force Lalchere to investigate the attack and inquiries will be supported by the Terrorism Investigation Squad.

The 20-year-old man accused of Sydney's knife rampage on Tuesday has been released from hospital and formally with murder. Police believe he killed her before fleeing the block.

Ms Dunn's best friend's post was accompanied with a slide show of pictures of the two young women at various social events, with smiles plastered across their faces.

Police were then alerted to the discovery of Ms Dunn's body.

Ney was later filmed running through the city streets brandishing a bloodied kitchen knife before being restrained by onlookers and arrested.

Though stunned and exhausted from the chase, the witnesses continued to hold Nay in place for several long minutes till the police arrived.

Investigators have been trying to piece together why Ney - who had a history of mental illness - launched the attack.

The accused was allegedly carrying a USB stick with information about recent mass casualties in New Zealand and the United States.

Over the next six days he attended Blacktown Hospital twice and visited a doctor to whom he expressed suicidal thoughts.

"In relation to the allegations, he will be defending the charges on the grounds of mental illness".

Ms Dunn's family issued a statement through the NSW Police on Tuesday requesting privacy.

In stark contrast to Ney's troubled existence, Ms Dunn has been remembered as a lovely, bright young woman with the world at her feet.

"He is going through a very hard situation at this time", lawyer Zemarai Khatiz told reporters.

Fellow Notre Dame University graduate Hannah Claire, 23, called her "bright, bubbly and full of life".

She grew up in Lidcombe in a loving family with her eldest sister Emily, who is a lawyer in the ACT.

She was reported to be a sex worker at the time of the attack.

The man has been denied bail and he is set to appear in court on Saturday.

"I don't want a situation where agencies in isolation are reviewing their practices when we need a system that works in a coordinated way, a meaningful way, to protect the individual, to support their family and, just as importantly, to support and protect the community", Labor health spokesman Ryan Park told reporters on Thursday.

Mr Khatiz said his client had also told him he had not been given medication for his mental illness.